Airlines are investing in sustainable aviation fuel despite high costs. Topics include infrastructure needs, technical pathways, and incentives like ReFuelEU. Delta Airlines' sustainability officer Amelia DeLuca shares insights on scaling up SAF procurement and the green premium, emphasizing the importance of SAF over carbon removal.
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Quick takeaways
Airlines are actively procuring sustainable aviation fuel (SAF) despite the cost disparity with traditional jet fuel, showcasing a genuine commitment to reducing emissions.
The aviation industry is exploring diverse pathways for decarbonization, including alternative feedstocks and production methods for SAF, emphasizing the scalability and market opportunities for green aviation solutions.
Deep dives
Delta's Approach to Sustainable Aviation Fuel (SAF) and Supply Chain Impact
Delta Airlines has been actively working on incorporating sustainable aviation fuel (SAF) into its operations since 2021. Despite the small scale of SAF procurement compared to the total jet fuel usage, Delta has been doubling their SAF purchases each year. The company acknowledges the significance of transitioning to SAF, showcasing a strong commitment towards decarbonization. Delta's efforts emphasize collaboration with B2B customers and suppliers to advance the SAF conversation and address supply chain challenges.
Green Premium and Demand for Sustainable Aviation Fuel
The aviation industry is experiencing a rising demand for decarbonized aviation fuel, despite the current cost disparity with traditional jet fuel. This demand reflects a genuine interest in reducing emissions and embracing green aviation solutions. Sustainable aviation fuel (SAF) encompasses various feedstocks and production methods, each with distinct advantages and drawbacks. The emergence of a market for premium green products in aviation highlights a unique opportunity for scaling decarbonization efforts.
Challenges and Opportunities in Scaling Sustainable Aviation Fuel
The journey towards scaling sustainable aviation fuel (SAF) faces challenges such as limited supply and higher costs compared to conventional jet fuel. Delta Airlines' initiatives include procuring SAF from multiple sources like waste oils and vegetable oils. As SAF technology evolves, the industry explores alternative feedstocks like alcohol to jet and envisions long-term solutions with power to liquids. Delta's strategic focus extends to building blending hubs and addressing scalability issues to ensure a sustainable transition.
Future Pathways in Aviation Decarbonization and Sustainability
The aviation sector envisions diverse pathways for decarbonization, including power to liquids, which involves capturing CO2 and hydrogen for synthetic fuel production. Green hydrogen, direct air capture (DAC), and carbon utilization hold promise for sustainable aviation solutions. As airlines consider the economic and environmental implications, the shift towards synthetic fuels and carbon removal technologies signifies a fundamental shift in the industry's approach to reducing emissions. Continued research and collaboration aim to navigate complex challenges and propel aviation towards a greener future.
Airlines are lining up to buy as much sustainable aviation fuel (SAF) as they can, despite it costing two to three times more than conventional jet fuel, according to BloombergNEF. United Airlines has secured 2.9 billion gallons of SAF over, and others like Delta, Air France-KLM, and Southwest have secured around 1 billion gallons each. And yet to meaningfully decarbonize aviation, the SAF market needs to grow thousands of times larger than it is today. BloombergNEF estimates that global production capacity will grow 10-fold by 2030, but by then supply will still only meet 5% of jet fuel demand.
So how are airlines thinking about scaling up their procurement of SAF?
In this episode, Shayle talks to Amelia DeLuca, chief sustainability officer at Delta. They cover topics like:
Who pays the green premium
Infrastructure considerations, like SAF hubs and blending
Technical pathways, like hydroprocessing, alcohol-to-jet, and power-to-liquids
The role of incentives and regulation, like ReFuelEU
Why airlines should procure SAF instead of buying carbon removal
Recommended Resources:
BloombergNEF: United Airlines Is Betting Big on a Pricey Green Aviation Fuel
The Verge: Delta Air Lines lays out its plan to leave fossil fuels behind
Canary Media: Can corn ethanol really help decarbonize US air travel?
Canary Media: How hydrogen ‘e-fuels’ can power big ships and planes
Catalyst is supported by Origami Solar. Join Latitude Media’s Stephen Lacey and Origami’s CEO Gregg Patterson for a live Frontier Forum on May 30th at 1 pm Eastern to discuss Origami’s new research on how recycled steel can help reinvigorate the U.S. solar industry. Register for free on Latitude’s events page.
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